Audit 290182

Title: Provider Relief Fund Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Hawaiʻi Pacific Health and is presented on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). The SEFA includes federal awards subject to the requirements of the Uniform Guidance. Because the SEFA presents only a selected portion of the operations of Hawaiʻi Pacific Health, it is not intended to and does not present the financial position, results of operations and changes in net assets, or cash flows of Hawaiʻi Pacific Health. Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursements. De Minimis Rate Used: N Rate Explanation: Hawaiʻi Pacific Health does not use the 10% de minimis indirect cost rate provided for in the Uniform Guidance. The United States Department of Health and Human Services (HHS) has indicated the Provider Relief Funds (PRF) on the SEFA be reported corresponding to the reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal (the Portal). Payments from HHS for PRF and American Rescue Plan (ARP) Rural are assigned to “Payment Received Periods” (each, a Period) based upon the date each payment from the PRF and ARP Rural was received. Each Period has a specified Period of Availability and timing for reporting requirements. Entities report into the Portal after each Period’s deadline to use the funds (i.e., after the end of the Period of Availability). The SEFA includes $55,604,566 of PRF and ARP Rural Funds received from HHS between July 1, 2021 and December 31, 2021 (PRF Period 4) and between January 1, 2022 and June 30, 2022 (PRF Period 5), under the PRF program for Assistance Listing No. 93.498 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution and related interest earned. In accordance with guidance from HHS, these amounts are presented as Period 4 and Period 5 in the HHS PRF Reporting Portal. Such amounts were recognized as other revenue on Hawaiʻi Pacific Health’s consolidated financial statements for the year ended June 30, 2022. These amounts are presented on the SEFA under Assistance Listing No. 93.498 for the fiscal year ended June 30, 2023 and reconcile to the PRF information reported to HRSA as follows. [See the Notes to the SEFA for table] The Hawaiʻi Pacific Health PRF Reports for Periods 4 and 5 include General Distribution payments received by the following Hawaiʻi Pacific Health Affiliates. [See the Notes to the SEFA for table]

Title: Disaster Grants – Public Assistance (Presidentially Declared Disasters) Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Hawaiʻi Pacific Health and is presented on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). The SEFA includes federal awards subject to the requirements of the Uniform Guidance. Because the SEFA presents only a selected portion of the operations of Hawaiʻi Pacific Health, it is not intended to and does not present the financial position, results of operations and changes in net assets, or cash flows of Hawaiʻi Pacific Health. Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursements. De Minimis Rate Used: N Rate Explanation: Hawaiʻi Pacific Health does not use the 10% de minimis indirect cost rate provided for in the Uniform Guidance. In fiscal year 2023, Hawaiʻi Pacific Health received approval from the Federal Emergency Management Agency related to the reimbursement of eligible expenditures of $1,097,650 incurred in previous fiscal years. These expenditures are included in the SEFA in the current year in accordance with guidance provided by the Department of Homeland Security.